1120S K-1 Shareholder Basis - please help

[miatax]

Hi ATX Community:

I just e-filed my 1120s at 4 a.m. this morning (yes..I procrastinated!) Then I realized on the Shedule K and K-1 the s/h basis shows approx $5,000 as prop distribution and $5,000 repayment of loans from s/h. I duplicated it in two places by mistake.

Before I amend though, if necessary,... this is what happened:

At the end of the year, I owed the company money (due FROM shareholder) since I used the company's account to pay for some personal things. At the end of the year instead of paying the money back to the company, I just recorded it as a distribution of the net income. Is this considered then a distribution and/or a repayment from loan? I don't know why I am getting confused on something simple.

Is this something only that affects basis since it has no effect on pass through income? What is the correct classification and do I need to amend?

Let me know.. Thank you for your help!

Frustrated in Miami...

miatax

[miatax]

:( help...

[kcjenkins]

If I understand you correctly, I don't believe you need to amend, since this does not affect the income.

[miatax]

If I understand you correctly, I don't believe you need to amend, since this does not affect the income.

Thank you KC... I won't amend it then.. I don't do any 1120s that's why I am a little bit confused whether it is a distribution or a repayment of loans from s/h.

[kcjenkins]

As I read your original post, you did not have a "loan from s/h". You had a "loan to s/h". Am I wrong?

[miatax]

As I read your original post, you did not have a "loan from s/h". You had a "loan to s/h". Am I wrong?

The company lent me the money - 'due from s/h' / asset on the books. So yes - Loan TO s/h. same thing? So then this does not affect basis, correct?

At the end of the year, instead of having a receivable - I decided that instead of writing a check to the company and then getting the money back when I make a distribution, automatically treat it as a distribtion. Does this make sense?